If you’re looking for ways to save money on your car insurance, bundling your policies is one of the most common ways to save. Commonly referred to as multi-line or multi-policy discounts, many carriers offer bundling opportunities through various products, such as: homeowners insurance, condo, renters, motorcycle, mobile home, farm, pet, health, snowmobile, boat, and umbrella. If you’re purchasing more than one type of insurance, it’s worth shopping around to see if you’ll be able to get a discount.
The bundle that’s most likely to save you money is your homeowners policy along with your auto insurance policy. As homeowners insurance is typically the most costly, it also nets the biggest discount. A 2016 J.D. Power report shows that the average premium for homeowners is $1,186 versus renters at $259. A Consumer Report study shows that those who bundle their homeowners insurance with auto insurance could save $235 in yearly premiums. Some homeowners are hesitant to file claims as this often results in an increase on the following year’s premiums. As a result, many carriers extend a “no-claims discount” for customers who’ve remained with the carrier and not filed any homeowners claims for a specific number of years (typically 5 years or more). Additionally, many carriers also offer safe driver discounts. Insurers are beginning to use telematics–devices or apps such as EverDrive–which measures safe driving habits in key metrics such as speed, acceleration, braking, turning, and distracted driving. Bundled together, a low claims history coupled with safe driving may result in steep discounts.
If you’re not a homeowner, there are also other products (as mentioned above) that you may benefit from bundling with your auto insurance. Renters insurance is one of the more affordable products carriers offer, though the discounts are typically smaller because the policies are cheaper than homeowners insurance. Some carriers also bundle auto insurance with life insurance, though this comes with a word of caution. Switching life insurance carriers may require a need for a new medical exam, factoring in health, lifestyle, and age issues, which could affect premiums or disqualify a candidate entirely.
While bundling may offer discounts and the convenience of a single bill, it’s not always the wisest choice. There are instances where it’s more financially prudent to split coverages if two separate companies offer cheaper prices. Also, consider that not all carriers offer the same coverages, and bundling with a new company could mean sacrificing coverages that are important to you. In any case, if you have more than one insurance need, it’s a good idea to shop around and consider the coverages that are most applicable to your specific needs to determine if bundling policies with your auto insurance can save you money.